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  • Writer's picturedemidont.com

Private company

Private company is another legal entity form, which is quite widespread in Ukraine.

Its benefits are:

  • The founders define the principles and governance mechanisms of the private company themselves

  • The founders are responsible for legal obligations of a private company within the limits of their contribution to its statutory fund

  • There is no legal requirement for the minimum amount of the statutory fund

  • Corporate activity can be conducted solo or with employees

  • Company owner governs it himself


The downsides of a private company are:

  • There is no specific law which would regulate the activity of a private company. Therefore, everything has to be set in its statutes

  • A private company has to be registered


When registering a private company, you will have to choose several activities which your company will conduct. One of them is your main activity and the rest - additional.


You will have to declare your profits and pay taxes - you can choose which tax system will be applicable to your company.


A private company will have to make contributions to the pension fund - it will be necessary to go there personally and fill in a number of forms.


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